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Micheal Vaz solutions for 12th Board Exam Accounts chapter 9 - Bill of Exchange (Trade Bill)

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Micheal Vaz Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy

Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy - Shaalaa.com

Chapter 9: Bill of Exchange (Trade Bill)

Exercise

Micheal Vaz solutions for 12th Board Exam Accounts Chapter 9 Exercise [Page 316]

Exercise | Q 1 | Page 316

Answer the following question in one sentence only.
What is bill of exchange?

Exercise | Q 2 | Page 316

Answer in one sentence only.
Who is Drawer?

Exercise | Q 3 | Page 316

Answer the following question in one sentence only.
Who is Drawee?

Exercise | Q 4 | Page 316

Answer the following question in one sentence only.
What is due date of bill?

Exercise | Q 5 | Page 316

Answer the following question in one sentence only.
What is an acceptance to bills of exchange?

Exercise | Q 6 | Page 316

Answer the following question in one sentence only.
What is qualified acceptance?

Exercise | Q 7 | Page 316

Answer the following question in one sentence only.
When is the bill said to be honoured?

Exercise | Q 7 | Page 316

Give word / term or phrase for the following statement.
Acceptance with some changes as regards the terms of a bill.

Exercise | Q 8 | Page 316

Answer the following question in one sentence only.
When is the bill said to be dishonoured?

Exercise | Q 9 | Page 316

Answer the following question in one sentence only.
What is inland bill exchange?

Exercise | Q 10 | Page 316

Answer the following question in one sentence only.
What is foreign bill of exchange?

Exercise | Q 11 | Page 316

Answer the following question in one sentence only.
What are noting charges?

Exercise | Q 12 | Page 316

Answer the following question in one sentence only.
When is the amount of bill of exchange payable to a specific person?

Micheal Vaz solutions for 12th Board Exam Accounts Chapter 9 Exercise [Page 316]

Exercise | Q 1 | Page 316

Give word / term or phrase for the following statement.
A bill of exchange drawn and accepted for a value received.

Exercise | Q 2 | Page 316

Give word / term or phrase for the following statement.
A person who draws a bill of exchange.

Exercise | Q 3 | Page 316

Give word / term or phrase for the following statement.
A person on whom a bill of exchange is drawn.

Exercise | Q 4 | Page 316

Give word / term or phrase for the following statement.
Payment in accordance with the apparent tenor of the bill.

Exercise | Q 5 | Page 316

Give word / term or phrase for the following statement.
Nonpayment in accordance with the apparent tenor of the bill.

Exercise | Q 6 | Page 316

Give word / term or phrase for the following statement.
Acceptance without making any change in the terms of a bill.

Exercise | Q 8 | Page 316

Give word / term or phrase for the following statement.
A bill of which payment to make on fixed period.

Exercise | Q 9 | Page 316

Give word / term or phrase for the following statement.
The bill which is drawn in one country and payable in other country.

Exercise | Q 10 | Page 316

Give word / term or phrase for the following statement.
Encashment of the bill before due date.

Exercise | Q 11 | Page 316

Give word / term or phrase for the following statement.
The person who transfer the ownership of the bill.

Exercise | Q 12 | Page 316

Give word / term or phrase for the following statement.
The person in whose favour the bill transferred.

Exercise | Q 13 | Page 316

Give word / term or phrase for the following statement.
The three extra days which are allowed over and above the period of the bill.

Exercise | Q 14 | Page 316

Give word / term or phrase for the following statement.
Transfer of title of the bill from debtor to creditor.

Exercise | Q 15 | Page 316

Give word / term or phrase for the following statement.
Payment of the bill before due date.

Exercise | Q 16 | Page 316

Give word / term or phrase for the following statement.
Fees charged by the Notary public on dishonour of a bill.

Exercise | Q 17 | Page 316

Give word / term or phrase for the following statement.
Officer appointed by Central Government for noting of dishonour bill.

Micheal Vaz solutions for 12th Board Exam Accounts Chapter 9 Exercise [Page 316]

Exercise | Q 1 | Page 316

Write True or False.
Bill of exchange is an instrument in writing, containing an unconditional order.

  • True

  • False

Exercise | Q 2 | Page 316

Write True or False.
A bill of exchange is signed by the person on whom it is drawn.

  • True

  • False

Exercise | Q 3 | Page 316

State whether the following statement is True or False.
A person to whom or as per his order, amount of bill is payable is a Payee.

  • True

  • False

Exercise | Q 4 | Page 316

Write True or False.
Honour of a bill means payment in accordance with the apparent tenor of the bill.

  • True

  • False

Exercise | Q 5 | Page 316

Write True or False.
Acceptance without making any change in the terms of a bill is called general acceptance.

  • True

  • False

Exercise | Q 6 | Page 316

Write True or False.
Acceptance with some change as regards the terms of a bill general acceptance.

  • True

  • False

Exercise | Q 7 | Page 316

Write True or False.
A bill of which payment to make on fixed period is after date bill.

  • True

  • False

Exercise | Q 8 | Page 316

Write True or False.
Drawee is a person who holds the title of the bill in due course.

  • True

  • False

Exercise | Q 9 | Page 316

Write True or False.
The inland bill which is drawn in and payable in the same country.

  • True

  • False

Exercise | Q 10 | Page 316

Write True or False
Discounting means encashment of the bill before due date.

  • False

  • True

Exercise | Q 11 | Page 316

Write True or False
Drawee can transfer the ownership of the bill.

  • True

  • False

Exercise | Q 12 | Page 316

Write True or False
Endorsee is person in whose favor the bill transferred.

  • True

  • False

Exercise | Q 13 | Page 316

Write True or False
Endorsement means transfer of title of the bill from debtor to creditor.

  • True

  • False

Exercise | Q 14 | Page 316

Write True or False
Retirement of bill means payment of the bill before due date.

  • True

  • False

Exercise | Q 15 | Page 316

Write True or False
Noting charges are payable to the Notary public on honour of a bill.

  • True

  • False

Exercise | Q 16 | Page 316

Write True or False
Payee is official person appointed by Central government for noting of dishonour bill.

  • True

  • False

Exercise | Q 17 | Page 316

Write True or False
Renewal is a request by drawee to extend the credit period of the bill.

  • True

  • False

Exercise | Q 18 | Page 316

Write True or False
A bill can't be deposited into bank for collection.

  • True

  • False

Micheal Vaz solutions for 12th Board Exam Accounts Chapter 9 Exercise [Pages 316 - 320]

Exercise | Q 1 | Page 316

Hitesh sold goods for Rs 4,500 to Ashok on 1.1.2010 and drew upon him a bill of exchange payable 2 months after sight. Ashok accepted the bill and returned the same to Hitesh. On the due date the bill was met by Ashok.
Record the necessary Journal entries in the books of Hitesh and also prepare Ashok account in his books.
1. When the bill was retained by Hitesh till the date of its maturity.
2. When Hitesh immediately discounted the bill @ 15% p.a. with his bank.
3. When three days before its maturity, the bill was sent by Hitesh to his bank for collection.
4. When the bill was endorsed immediately by Hitesh in favour of his creditor Venkat.

Exercise | Q 2 | Page 316

On 2nd Jan., 2011 Kiran of Kanpur purchased goods from Kavita of Kedgaon for Rs 4,850 and gave his acceptance to after date bill for 60 days on 5th Jan, 2011 for the same amount. On the same date Kavita of Kedgaon deposited the bill into bank for collection. On the due date Kiran honoured his acceptance.
 You are required to pass journal entries in the books both the parties. 

Exercise | Q 3 | Page 317

Vasanti sold goods on credit of Rs 8,500 to Aruna on 14th July 2009. On the same date Vasanti drew two bills for Rs 5,000 and 3,500 for 2 and 3 months period respectively. Aruna accepted and return immediately. On 21st July, 2009 Vasanti deposited 3 months acceptance to her bank for collections.
 On the due date of the respective bills Aruna honoured 2 months acceptance but dishonoured the second for which Vasanti paid nothing chargers Rs 60 and her bank debited 50 for bank chargers
 Pass the journal entries in the books of Vasanti and Aruna.

Exercise | Q 4 | Page 317

Sudhatai sold goods to Chhayatai on credit for 4 months for Rs 10,000 on 7th Sept., 2009. Chhayatai paid on her account of Rs 4,000 at 2% cash discount and accepted bill for the balance at 2 months. On the same date Sudhatai discounted with her bank at 12% p.a. on due date Chhayatai honoured her bill.
A. You required to write journal of Sudhatai.
B. Pass journal entries in the books of Sudhatai assuming that on due date the bill is dishonoured and Sudhatai’s bank paid noting chargers Rs 100.

Exercise | Q 5 | Page 317

On 1st August, 2010 Swapnali sold goods to Swapnil on credit for Rs 20,000. And drew two bills of 60% and 40% of the amount due from Swapnil for 3 and 4 months period respectively. Swapnil accepted and return it to Swapnali immediately. On 1st September 2010 Swapnali send 3 months acceptance to her bank for collection and discounted 4 months acceptance with her bank @ 18% p.a.

On the due date of the respective bills Swapnil honoured 3 months acceptance for which bank debited Rs 50 as bank charges. On due date of 4 months acceptance Swapnil dishonoured for which Swapnali’s bank paid nothing charges Rs 100.
 
Pass the journal entries in the books of Swapnali and prepare Swapnil’s account in her ledger.

Exercise | Q 6 | Page 318


On 1st August, 2012 Omprakash drew a bill of Rs 10,000 for 60 days after date on Sharadchandra. On 15th August, 2012 Omprakash purchased goods from Hariprasad for Rs 12,000. On the same date Omprakash endorsed Sharadchandra’s bill in favour of Hariprasad and paid the balance by cheque at 1% cash discount. On the same date Hariprasad discounted the bill with his bank for Rs 9,500.
 
On the due date Sharadchandra honoured his acceptance presented by Hariprasad.You are required to pass journal entries in the books of Omprakash, Sharadchandra and Hariprasad.

Exercise | Q 7 | Page 318

On 5th September, 2010 Prakash Patil accepted a bill of Rs 16,000 drawn by Chandu Chaudhari for 3 months. This bill was drawn for amount which Prakash Patil owed to Chandu Chaudhari. On same date Chandu Chaudhari purchased goods from Magan Mahajan for Rs 20,000 for this Chandu Chaudhari endorsed Prakash Patil’s acceptance in favour of Magan Mahajan and accepted 2 months bill for the balance due. On 5th October, 2010 Magan Mahajan discounted both the bill with his bank @ 12% p.a.

 On the due date Prakash Patil’s honoured his acceptance while Chandu Chaudhari unable to meet the payment for his acceptance. Magan Mahajan’s bank paid noting charges Rs 100.
 
Pass Journal entries in the books of Magan Mahajan and also prepare Prakash Patil’s and Magan Mahajan ledger account in the books of Chandu Chaudhari.

Exercise | Q 8 | Page 318

Harbhajan draws a bill on Manmit for Rs 8,000 at 3 months. Manmit accepts and return to Harbhajan. Harbhajan then sends the bill towards his bank for collections.
 
On due date Manmit find himself unable to make payment of the bill and request Harbhajan to renew it. He accepted the proposal on the condition that Manmit should pay Rs 2,000 along with interest @ 15% p.a. in cash and should accepts new bill for the balance at 2 months. These arrangements were carried through. One month before Manmit retired his acceptance @ 12% p.a.

Give journal entries and Manmit’s Account in the books of Harbhajan.

Exercise | Q 9 | Page 318

On 1st April, 2011 Umakant draws a bill for Rs 25,000 on Laxmikant for 4 months period. The bill is accepted and returned to Umakant. On the same date Umakant discounted the bill with his bank @ 12% p.a.
 Before due date Laxmikant finds himself unable the bill, hence required Umakant to renew the bill for further period of 2 months. Umakant agreed and he took the bill back from bank and received new acceptance for Rs 26,000 including interest. This new bill is duly honoured by Laxmikant on due date.
 Write Journal of Umakant and Laxmikant for the above bill transactions.

Exercise | Q 10 | Page 318

On 1st June, 2010 Narayan draws a bill for Rs 50,000 on Chunilal for 4 months period.
The bill is duly accepted and returned to Narayan. One month after the date. Narayan discounted the bill with bank @ 18% p.a.
 
Before due date Chunilal dishonoured his acceptance. Bank paid noting charges Rs 1,125.  Narayan requested to renew the bill for further period of 2 months. Narayan agreed he took the bill back from bank and received new acceptance for 40% amount of the bill with full amount of noting charges and cheque for 60% balance plus interest @ 12% p.a.

Before the due date Chunilal declared insolvent and 30% of the amount due could be recovered from his private estate.
 Write Journal of Narayan and Chunilal for the above bill transactions.

Exercise | Q 11 | Page 318

Sushant owes Surekha Rs 1,25,000 Surekha draws a bill for Rs 1,00,000 on Sushant for 4 months period and received the cheque for the balance. The bill is duly accepted and returned by Sushant. On the same date Surekha endorsed Sushant’s acceptance to Suresh.
 On the due date Suresh informed Surekha that Sushant dishonoured his acceptance and Rs 3,175 paid as noting charges Surekha then drew a new bill for 3 month on Sushant including noting charges and interest Rs 4,000. On the due date bill was duly honoured by Sushant.
 Write Journal entries in the books of Surekha and prepare Surekha’s account in the books of Sushant.

Exercise | Q 12 | Page 319

On 7th May, 2011 Kulkarni of Karvenagar draws a bill on Patwardhan of Latur for Rs 18,000 at 3 months. Patwardhan accepts and returns it to Kulkarni. Kulkarni then sent the bill into his bank for collections.
                    On due date Patwardhan finds himself unable to make payment of the bill and request Kulkarni to renew it. Kulkarni agreed on the condition that Patwardhan should pay Rs 5,000 in cash, and should accept new bill for the balance at 2 months with interest @ 18% p.a. These arrangements were carried through. Before due date Patwardhan declared as insolvent and 20% of the amount due could be recovered from his private estate as first and final dividend.
                    Give journal entries in the books of Kulkarnis. Also prepare Kulkarni’s Accounts in the books of Patwardhan.

Exercise | Q 13 | Page 319

On 1st Sept., 2010 Badrinath drew a bill of Rs 20,000 on Dinanath at 4 months. The bill was duly accepted by Dinanath. On 5th Sept., 2010 Badrinath endorsed the bill in favour of Somnath. However on 1st January, 2012 Dinanath approached to Badrinath and requested bill be renewed for a further period of 3 months at 15% p.a. Badrinath agreed and paid necessary money to Somnath. Before one month of the due date of the new bill Dinanath retired his acceptance @ 10% p.a.
          Pass journal entries in the books Badrinath and Dinanath.

Exercise | Q 14 | Page 319

Journalise the following bill transactions in the books of Gopal as on 14th August, 2010.

1. Shruti’s acceptance to Gopal Rs 4,500 retired one month before due date at rebate 10% p.a.

2. Discounted 3 months acceptance of Chandrakant for Rs 3,500 with bank @ 12% p.a.

3. Received cheque Rs 2,000 and 2 months acceptance drawn on Sushama for Rs 10,000 for the balance due on her account.

4. Endorsed Shantaram’s acceptance at 2 months of Rs 5,000 in favour of Balchandra and paid cash Rs 2,500 in full settlement of this account Rs 7,800.

5. Sold goods of Rs 13,500 on credit to Nanda. Drew 2 months bill on her. Which is duly accepted and returned by her.

Exercise | Q 15 | Page 319

Journalise the following bill transactions as on 21st May, 2010 in the books of Prabodhan.
A. Renewed Veerendra’s acceptance of Rs 17,500 due on 21st May 2010 with interest Rs 500 for 2 months.

B. Bank informed that Radhabai’s acceptance of Rs 1,400 which was discounted dishonoured, bank paid noting charges Rs 185.

C. Sent acceptance of Rs 12,000 at 120 days after sight, drawn by Mudhukar for the amount due to him.

D. Pandharinath honoured his acceptance of Rs 8,500 which was deposited into bank for collection.

Exercise | Q 16 | Page 319

Journalise the following bill transactions as on 31st July, 2011 in the books of Pratapsing.
A. Renewed Vinyak’s acceptance of Rs 6,000 due on 31st July, 2011 by accepting cash Rs 2,000 and drawing bill for the balance with interest @ 18% p.a. for 3 months.

B. Accepted a bill of Rs 5,000 at 3 months at sight, drawn by Arvind for the amount due to him Rs 6,000 and balance paid by cheque.

C. Jethabhai honoured his acceptance of Rs 9,800 which was deposited into bank for collection and bank debited Rs 80 for bank charges.

D. Bank informed that Prajakta’s acceptance of Rs 4,000 which was discounted dishonoured, bank paid noting charge Rs 85. Renewed at her request for next 2 months with interest @ 18% p.a.

 

Exercise | Q 17 | Page 320

Journalise the following transactions on following dates in the books of Ankur.
A. On 1st April, 2011 Kiran informs Ankur that Kajol’s acceptance of Rs 8,000 endorsed to him dishonoured and noting charges paid Rs 250.
B. On 11th April, 2011 Ankur renews his acceptance of Rs 7,400 to Amol by paying cash Rs 2,400 and accepting new bill for 2 months for the balance plus interest @ 15% p.a.
C. On 15th April, 2011 Nilima retired her acceptance to Ankur of Rs 5,700 by paying cash Rs 5,300.
 D. On 21st April, 2011 recovered Rs 50% of the amount due, from the private estate of Liladhar who declared as insolvent, against his bill of Rs 3,800 which was  dishonoured by him on 29th December, 2010 and noting charges paid Rs 80.

Exercise | Q 18 | Page 320

Journalise the following transactions on following dates in the books of Gajanan
A. On 3rd October, 2012 Bankatlal informs Gajanan that Navnath’s acceptance of Rs 16,000 endorsed to him dishonoured and noting charges paid Rs 200.
B. On 9th October, 2012 Vishwanath’s acceptance for 120 days of Rs 15,500 dated 24th September, 2008 deposited into bank for collections.
C. On 11th October 2012 Gajanan sold goods to Kartik for Rs 4,500 and received own acceptance from him, which was given to milind of Rs 4,500 and due for payment on this date.
D. 20th October, 2012 recovered 40% of the amount due the private estate of Jyoti who declared as insolvent, against bill accepted by her for Rs 6,000 which was dishonoured on 29th September, 2008.
E. On 21st October, 2012 Gajanan renews his acceptance of Rs 7,500 to Pandurang by paying cheque Rs 3,500 and accepting new bill for 2 months for the balance plus interest @ 18% p.a.

Chapter 9: Bill of Exchange (Trade Bill)

Exercise

Micheal Vaz Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy

Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy - Shaalaa.com

Micheal Vaz solutions for 12th Board Exam Book Keeping and Accountancy chapter 9 - Bill of Exchange (Trade Bill)

Micheal Vaz solutions for 12th Board Exam Accounts chapter 9 (Bill of Exchange (Trade Bill)) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Maharashtra State Board Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. Micheal Vaz textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in 12th Board Exam Book Keeping and Accountancy chapter 9 Bill of Exchange (Trade Bill) are Introduction of Bill of Exchange (Only Trade Bill), Necessity of Bill of Exchange (Only Trade Bill), Draft Or Format of Bills, Parties to the Bill of Exchange, Acceptance of Bill, Important Terms of Bills of Exchange - Term of Bill, Important Terms of Bills of Exchange - Days of Grace, Important Terms of Bills of Exchange - Date of Maturity, Important Terms of Bills of Exchange - Due Date, Honouring of Bill, Dishonour of Bill, Important Terms of Bills of Exchange - Noting of Bill, Protesting of Bill, Basic Term of Bills of Exchange - Notary Public, Basic Term of Bills of Exchange - Noting Charges, Accounting Treatment of Bill by the Drawer Or Holder and Drawee, Accounting Treatment - Retaining the Bill Till Due Date. Honour Or Dishonour, Insolvency of the Drawee Or Acceptor, Accounting Treatment - Endorsement of the Bill, Honour/ Dishonour and Also Insolvency of Acceptor, Accounting Treatment - Discounting the Bill with the Bank Honour/Dishonour and Insolvency, Accounting Treatment of Bill - Sending the Bill to the Bank for Collection, Honour Or Dishonour and Insolvency, Accounting Treatment of Bill - Making Part Payment of Basic Amount, Interest and Noting Charges and Drawing of New Bill, Accounting Treatment of Bill - Honour Or Dishonour of New Bill, Accounting Treatment of Bill - Insolvency of the Acceptor and Settlement of His Account, Accounting Treatment of Bill - Retirement of Bill, Accounting Treatment of Bill - Journal Entries and Ledger, Bill of Exchange Examples and Solutions.

Using Micheal Vaz 12th Board Exam solutions Bill of Exchange (Trade Bill) exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in Micheal Vaz Solutions are important questions that can be asked in the final exam. Maximum students of Maharashtra State Board 12th Board Exam prefer Micheal Vaz Textbook Solutions to score more in exam.

Get the free view of chapter 9 Bill of Exchange (Trade Bill) 12th Board Exam extra questions for Accounts and can use Shaalaa.com to keep it handy for your exam preparation

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